medium · Debt Capital Markets bond-instruments-structures
If a 5-year FRN is issued with an Original Issue Discount (OID) at a price of 99.00 and a quoted margin of 400 bps, what is the 'all-in' spread to the investor at inception?
- 400 bps
- 380 bps
- 405 bps
- 420 bps
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